Alliant High-Rate Savings Review: A Credit Union With Big Bank Appeal

The Alliant High-Rate Savings account offers a decent APY with no monthly fees. Though you have to join the Alliant credit union to open an account, doing so could give you competitive interest rates, low fees, and other credit union perks. Find out more about this account, including pros and cons, in this Alliant High-Rate Savings account review.

You'll need at least $5 in your account to keep it open, and $100 to earn interest, which might rule it out for those just getting started with saving. Plus, the APY on the Alliant High-Rate Savings account falls short of rates available from online banks and credit unions.

Top perks

3.10% APY: Alliant's APY is more generous than what you'd get at most big brick-and-mortar banks, though it's not as lucrative as many of today's high-yield savings accounts.

No monthly fees: Alliant High-Rate Savings account has no monthly fees as long as you elect to receive eStatements. If you need paper statements, you'll be charged a $1 monthly service fee.

Free ATM card: An ATM card provides easy access for cash withdrawals and deposits at qualifying ATMs. As long as you're in good standing at the credit union, your ATM card gives you access to withdraw $500 daily, plus the option to deposit $10,000 each day.

More than 80,000 surcharge-free ATMs: Alliant has a wide network of surcharge-free ATMs. Alliant claims its number of surcharge-free ATMs exceeds that of Chase and Bank of America combined. Use the ATM locator tool on Alliant's website to find one near you.

Mobile app: Alliant's highly rated app includes key features such as electronic transfers to and from external accounts and mobile check deposits.

Supplementary savings: Alliant will allow you to open as many as 19 sub-accounts associated with your Alliant High-Rate Savings account. This can come in handy when you're saving for separate goals.

NCUA insured: Finally, Alliant High-Rate Savings account is covered by the National Credit Union Administration (NCUA). Similar to FDIC insurance for banks, your account is federally insured up to $250,000 in the event of an institutional failure.

LEARN MORE: Credit Union vs. Bank: What's the Difference?

What could be improved

APY isn't the most competitive: Once upon a time, the Alliant High-Rate Savings account had one of the highest rates we'd seen. Nowadays, this account isn't as competitive and might not be the best place for your money if earning the maximum is important to you.

Minimum balance requirements: You have to maintain a minimum balance of $5 to keep your account open -- and a daily average minimum balance of $100 to earn interest. While this is feasible for most people, other online savings accounts have no minimum balance requirements to earn interest.

Membership qualification: Alliant is a credit union, so it has some membership requirements that online banks don't have. More than anything, this is a modest knock on credit unions, not Alliant specifically. Luckily, it's pretty easy to qualify.

You're eligible to join Alliant if any one of the following is true:

• You're a current or retired employee of one of the many businesses and organizations Alliant partners with in the U.S.
• You're an immediate family member or domestic partner of a current Alliant member.
• You live or work in one of the communities near Alliant's corporate headquarters in Chicago.
• You become a member of Foster Care to Success (Alliant will pay your $5 membership fee).

You have several options for accessing the money in your Alliant High-Rate Savings account. Here's a closer look at them.

Deposit options

Savers have several convenient ways to start parking their cash in an Alliant savings account, including:

• Electronic transfer
• Direct deposit
• Deposits at select ATMs
• Mobile deposit
• Wire transfer
• Mailed check

Withdrawal options

Withdrawing funds is similarly convenient and can be completed by:

• Electronic transfer
• Wire transfer
• Requesting a mailed check
• ATM withdrawal

Bear in mind that if you're withdrawing money with your ATM card, your daily limit is capped at $500.

If you want a high-yield savings account and you qualify for membership with Alliant Credit Union, Alliant High-Rate Savings account is an excellent option with decent rates and no monthly fees. It's particularly well suited for folks who plan to withdraw money from their savings using an ATM card, though you'll want to keep the daily limits firmly in mind.

If you don't need ATM access, however, there are a few competitors with higher rates and no minimum balance requirements that might suit your needs better.

Keep reading about Alliant Credit Union:

• Alliant Credit Union
• Alliant CD
• Alliant Credit Union Ultimate Opportunity Savings
• Alliant High Rate Checking

Our savings account methodology

At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

• APY: 50%
• Brand and reputation: 20%
• Fees and minimums: 15%
• Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.